I have a handful of SFRs but I've never bought anything that wasn't on the MLS.
I've gotten wind of two properties in my area that are likely going to be available soon. One is a friend renting a house whose landlord has said he wants to sell so they have to move (they're on month-to-month). She says the house has foundation issues (not uncommon in our area). The house was purchased about 8 years ago.
The second is two doors down from her and is "going into foreclosure" Apparently the owner is underwater 30K. Although he's owned it 18 years, apparently he has refinanced and spent all the equity. Not sure if I should approach the bank that would foreclose
I have requested comps from my realtor, but I'm curious how others would approach each owner to negotiate a deal on one or both of these.
Thanks in advance.
Honestly I would say that you can just use a one page purchase agreement and close with a title company or closing attorney. That's it really. Nothing special about buying unlisted properties. Just make sure you do your due diligence and you are on! You can do it. Just have faith and make sure the numbers work for you. Plan for contingencies is always wise.
Stephen Barton, Real Estate Agent in IN (#RB14052302)
I guess what I'm really asking is not how to close, but how to approach negotiations. For property number 1, the advantage to the landlord is that I would buy the property quickly, as is and take on the risks of repair.
For property 2, If he wants me to buy it for what he owes or what he owes (maybe plus some cash to move), then he can avoid a foreclosure and get rid of the obligation. maybe I should find out who the bank is and try to negotiate with them? Prices in our area did not plummet as in some others, so I'm not sure how the current owner could be so far underwater. If I have to negotiate with the bank, that seems like a lower probability of success, but maybe not as much if it's a community bank.
I posted in the wholesale forum because it seems like this is how wholesalers handle leads. Maybe I should listen to the podcast with @Lamar Cannon
There are plenty of ways to approach these. I'd need to ask you a couple questions about the conversation with the sellers, their tone of voice, motivation, etc. Call me if you want to chat & let's make these deals happen.
What is your planned exit with these properties?
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